A NORTH-EAST company has been subject to a management buyout after going into administration.

Thrislington Engineering, which has been in Newton Aycliffe, County Durham, for more than 50 years, called in the administrators last week.

A management buyout has taken place and a new company, Thrislington Products, expects to be able to continue trading.

Administrator Edwin Kirkwood, of EJK Associates, said: "Clearly they had a difficult period of trading and were unable to meet all of their liabilities.

"They looked at various possibilities, but finally concluded that the company in its present form couldn't continue to trade because it couldn't meet its liabilities.

"They did consider the possibility of a voluntary arrangement, but didn't feel it was going to be successful."

The administrator has approved the sale of the business, which makes steel partitions, to a management buyout team.

Mr Kirkwood, who would not reveal the extent of the old company's liabilities, said: "It's too early to say what the exact position will be, but I don't expect a very substantial dividend to creditors."

No one from Thrislington Products was available for comment last night.